For brands, celebrity collaborations can yield more than just a few viral Instagram posts. They can bring significant benefits including increased sales, brand awareness, and even equity.
However, it’s important that companies choose the right celebrities to partner with. For example, it’s best to work with celebrities who have an audience that matches the company’s.
They Build Brand Trust
A celebrity brand collaboration can be a major boon to your company’s profits and marketing, but it’s also important to remember that there is a truckload of work that goes into making a collaboration successful. It is a process that should be well thought out and planned before it happens, as the success of a partnership can depend on more than just the celebrity’s popularity or social media following.
In order to have a good partnership, the celebrity needs to actually believe in the product and want to endorse it. In addition, they need to have a public image that is positive and morally upstanding. For example, if the celebrity is a popular rapper, singer or actor, they should not be associated with any brand that promotes negative actions or products.
Another aspect to consider is that the celebrity needs to be able to explain and sell the product in an authentic manner. Celebrities often bring in a team of experts to help them with the formulations, production, and creative direction.
In the past, it was easier to launch a product with a celebrity’s name and face and have it succeed. However, consumers are much smarter today and are immune to surface-level endorsements. They are looking for authenticity and brands who take the time to make their celebrity partnerships a true collaboration will see a higher ROI on their investments. This is especially important for enterprise SaaS companies that are seeking to differentiate themselves from the competition and retain their consumers in the long term.
They Increase Sales
Whether they’re wearing the product or simply promoting it, celebrities can help boost sales and revenue for brands. This is especially true when the celebrity’s personal brand resonates with the product and audience. Brands like Nike and Jordan have tapped into this power and transformed the athlete into a lifestyle brand with millions of followers. A successful collaboration can take a brand into new markets and establish it as a leader in its industry. Top earning celebrity brands are what businesses seek to partner with to increase their sales.
The most successful brand-celebrity partnerships go beyond just a simple endorsement. Celebrities get their hands dirty, often participating in the design and production process or contributing to the marketing strategies. This level of engagement can lead to higher customer retention and deeper engagement, which in turn translates into a stronger ROI for both parties. Companies like AudiencePlus, who partnered with the actress and model Danielle Fishel (better known as Topanga from the popular 90’s sitcom Boy Meets World) have found this to be true.
As a result, it’s important for brands to choose their partners carefully. A single erroneous public interaction or hasty social media post can sour the public’s perception of an otherwise beloved personality. To avoid this, brands should ensure that their celebrities have a solid understanding of business and can maintain a professional demeanor.
For some celebrities, the best way to maximize their value as a brand collaborator is by owning a stake in the company. This allows them to develop the brand to their liking and gives them full control of the products they’re promoting. Several celebrities have taken this route, including rap artist Post Malone who created his own tequila brand, 818 and rapper/actor Sean “Diddy” Combs with his Ciroc vodka brand.
They Create Hype
Celebrities are able to use their star power to generate hype and interest in new products. In a way, they’re like brand ambassadors for the brands they partner with, allowing them to market their products and services to loyal, fan-based audiences. In turn, these partnerships often provide benefits for both parties, including increased sales and brand awareness.
This past year, we’ve seen a number of celebrity brand collaborations take off and gain momentum. Whether it’s a TikTok trend or a limited-time menu item, celebrities have been able to create buzz around their products and services by working with brands to create fun and engaging content.
When deciding to partner with a celebrity, it’s important for brands to find someone who fits their brand and has a similar public image. In addition, it’s vital to find a celebrity who has a following that is relevant to the products and services you are trying to promote. This will ensure that the campaign is successful and that it reaches the right audience.
It’s also helpful to work with a team that understands the ins and outs of a celebrity partnership. Whether it’s a talent manager, agent, or publicist, these individuals will be the key players in a collaboration and will be able to help guide you through the process. They’ll be able to answer any questions you may have and help you develop a strategy that will maximize your ROI.
They Increase Brand Awareness
Celebrity brand collaborations can also help brands establish themselves as trendsetters in their industry, especially for newer or younger brands. For instance, when Nike partnered with the All Blacks rugby team, they established themselves as a sports brand that supports good values and sportsmanship. When celebrities are involved in a campaign, they can communicate these characteristics to their large fan-based audiences, which in turn inspires consumers to adopt the same behaviors.
Consumers are particularly receptive to celebrity endorsement campaigns for brands that promote ethically made products. They are also more likely to buy durable products or services from a brand that aligns with their beliefs and interests. In addition to promoting products and services, many celebrities use their platform to speak out about the causes they care about. In this way, they can help consumers make decisions that positively impact the world and build brand loyalty.
When a celebrity is attached to a brand, it’s important for the brand to clearly articulate how they plan on driving engagement and sales. Often, celebrity partners are hired for an entire marketing campaign, which means the brand needs to have a clear plan of action with specific goals. The most successful partnerships are those that take into account the celebrity’s input and ensure all creative elements align with the overall brand objectives.
For enterprise brands that are considering a celebrity partnership, it can be a smart move to offer equity to the celebrity in order to gain their interest and ensure alignment. The more invested a celebrity is in the brand, the better their chances of advocating for it long-term and helping it grow. Investing in a celebrity also gives the business credibility with consumers who are more likely to see it as an authentic and credible source of information.
They Create Brand Equity
Celebrities often partner with brands to launch new products, turn existing ones into bestsellers, or draw attention to products that might not otherwise receive consumer interest. In this way, celebrity-branded product lines can become viral trends, creating a positive image for both the celebrity and brand.
Celebrity brand collaborations are a way for brands to promote themselves and their products while also helping celebrities to build equity and make money. However, this isn’t something that just happens by itself; it requires rigorous evaluation before striking partnerships and a dedicated monitoring and collaborating process to ensure that the brand values and voice of both parties are aligned.
In addition, consumers are becoming increasingly marketing-savvy and don’t respond well to brands that use celebrities and macro-influencers in an inauthentic manner. Instead, they want meaningful, authentic relationships with brands that they can connect with and believe in.
As a result, many celebrity brand collaborations aren’t successful. One errant tweet, poorly received public interaction, or hasty social media post can quickly sour the relationship and damage a brand’s reputation. For example, the infamous Kendall Jenner and Pepsi controversy has put a damper on the future of many celebrity-branded product lines. Nonetheless, if brands take the time to carefully evaluate their celebrity partners and are diligent in following through with their marketing efforts, they can see big returns on their investment.